Oil edged lower on Tuesday as buyers express anxiety over the possibility that a stimulus package aimed at aiding China’s flailing economy may fall short of expectations.
West Texas Intermediate set for August delivery fell to approximately $71 per barrel, while global benchmark Brent declined after losing 0.7% on Monday.
Following the Chinese central bank’s decision to reduce its interest rates last Tuesday, observers are waiting to see the extent to which the nation’s government will aid economic growth.
Supply will also be a major factor in driving oil prices, with the Organization of Petroleum Exporting Countries (OPEC) deciding to implement an output reduction in an effort to drive prices upwards.
Observers will also be eager to learn of the developments discussed in talks between Iraqi and Turkish officials on Monday. The conversation concerned a possible resumption of Iraqi oil flows through to the port of Ceyhan.